REVEALED: The $28 challenge that will save you $10,000 - and why you always need an emergency fund
- A group of financial experts have revealed how to save $10,000 in 12 months
- Putting aside $28 a day will save you $10,220 by the end of one year
- Everyone should have three months worth of income in an emergency fund
- This will provide assistance in times of financial strain
A group of financial experts have revealed how to save just over $10,000 in one year without sacrificing your lifestyle habits.
The Australian experts from Ruby Connection said by putting aside a mere $28 a day, you will save a total of $10,220 by the end of 12 months.
By saving a little amount each day, this will help you build an 'emergency fund' that can be used in times of financial stress.
Ruby Connection, part of Westpac Banking, is a community where like-minded individuals can come together to become more financially confident and learn different saving strategies.
The Australian experts from Ruby Connection said by putting aside a mere $28 a day, you will save a total of $10,220 by the end of 12 months
An emergency fund will ensure you have enough money to live and pay bills for a certain amount of time if the worst situation was to occur, such as a job loss.
'The best way to overcome financial emergencies is to be prepared with savings,' the experts wrote online.
'A good rule of thumb is to have enough in your emergency fund to cover at least three months of expenses.'
The experts added how families should aim to save at least six months' worth of income in order to cover for larger costs, including school fees or childcare fees.
By saving a little amount each day, this will help you build an 'emergency fund' that can be used in times of financial stress
Recent studies have shown that only 37 per cent of Australians would be able to rely on an emergency fund in a time of financial crisis.
This indicates that two-thirds of the population would struggle financially if they were to suddenly lose their job.
In times of financial distress, the experts recommended to always ask for help when you need it in order to cope with the stress of the situation.
But if you don't want to turn to asking family or friends for assistance, the Federal and State governments offer assistance programs when Australians need urgent help with money.
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